The unique house owners of the property that turned the Sankoty Lakes resort have filed a lawsuit towards famous Peoria developer Kim Blickenstaff, alleging their partnership was spoiled by fraud and breach of contract.
The lawsuit filed in Woodford County courtroom facilities across the 220-acre ecotourism resort that opened in early 2021. Positioned alongside Route 26 simply south of Spring Bay, the resort boasts three lakes, a trout stream, and glamping tents together with a full-service on-site restaurant.
Blickenstaff introduced plans to overtake the property in 2019, and development started quickly after to rework the land from a gravel pit to a elegant, Midwestern retreat.
Dwayne and Patty Atherton have been the unique house owners of the property that turned Sankoty Lakes. They filed the lawsuit Oct. 17, detailing Dwayne Atherton’s account of a partnership with Blickenstaff and Greg Birkland, the president and CEO of Blickenstaff’s Peoria-based KDB Group, through which Atherton was supplied a one-third stake within the Sankoty Lakes enterprise in trade for planning and development companies for the resort.
In line with the lawsuit, Atherton labored for 3 months with out pay previous to receiving a minimal wage with the understanding he can be included as a accomplice upon venture completion. The lawsuit states that he was later fired by Birkland when development on the resort was accomplished, and that Birkland and Blickenstaff have denied any partnership with Atherton. Atherton claims he suffered “vital monetary losses” in consequence.
Along with the allegations of fraud, the Athertons additionally accuse Blickenstaff and Sankoty Lakes Resort of trespassing and negligence leading to injury to the Athertons’ property adjoining to the resort. The impacts on the property allegedly embody floor and water contamination through “petroleum merchandise” leaking from an improperly saved barge, and elevated erosion as a result of water being pumped from the Sankoty property onto the Athertons’ property.
The lawsuit additionally references a plan through which laborers aiding with development have been paid in money “for the aim of avoiding potential employees compensation legal responsibility.” The lawsuit outlines an alleged process through which Birkland would pay Herman Brothers Pond Administration an quantity equal to the laborers’ wages, then Herman Brothers would pay Atherton. He would then money the test, and pay the laborers.
Herman Brothers Pond Administration operates Large Goose Ranch in Canton, and was employed by Blickenstaff to supervise the development of Sankoty Lakes Resort.
Birkland supplied the next assertion relating to the lawsuit:
“We now have lately obtained a replica of a criticism filed towards Sankoty Lakes, and associated entities. It’s unlucky that the plaintiffs within the lawsuit determined to deal with their dispute on this method; nevertheless, Sankoty Lakes appears ahead to participating within the authorized course of to indicate that plaintiff’s allegations set forth within the criticism will not be actionable. We are going to enable the authorized course of to take its course, and haven’t any additional remark right now. Sankoty Lakes continues to be the Midwest draw for households close to and much to make lifelong reminiscences in Spring Bay, a lot as Kim Blickenstaff and his household did. He stays dedicated to Sankoty Lakes, the staff, and visitors. Sankoty Lakes will proceed to serve the group as an important journey retreat.”
Sankoty Lakes Resort is now operated by Seattle-based firm Columbia Hospitality.
Patty Atherton declined to remark Tuesday, citing recommendation from their lawyer.
The Athertons are looking for a jury trial and damages for a complete of six counts.
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